Cryptocurrency Plunge Created Rare Prospects for Savvy Traders, Says Coinbase

Regardless of the volatility of the last month’s crypto market breakdown, Coinbase has recognized more than a few unusual methods through which crypto traders were profiting in the thick of the bedlam.

The sudden market plunge saw infrequent profits being created through stablecoin speculation, ‘crypto-and-carry’ derivatives arbitrage, and the fiasco of MakerDAO’s auction protocol.

The crypto exchange emphasizes that the abrupt change in market sentiment from bullish to bearish generated prospects for derivative arbitrage through “crypto-and-carry” trades.

Coinbase approximates that the virtual asset market is typically net sixty percent bullish with futures prices greater than spot prices. The crypto exchange asserts that arbitrage through derivatives is characteristically implemented through ‘cash-and-carry’ trades.

With the cryptocurrency markets unexpectedly turning bearish, traders were squarely able to long Bitcoin while selling on the spot market in order to realize gains through ‘crypto-and-carry’ trades during the March market plunge.

Furthermore, the aforementioned report notes that numerous stablecoins snapped their fiat-peg to the upside as traders hurried to lock in value as the selling of digital assets intensified amid the market plunge.